Tegal Moves to Nasdaq Small Cap Market
Online Staff -- EDN, May 6, 2003
Tegal Corp., in effort to remain on the Nasdaq stock exchange, said today it is transfering the listing of its common stock to the Nasdaq SmallCap Market, and considering a reverse stock split to bring up its share price.
The Petaluma, Calif.-based etch and deposition tool vendor has been threatened with delisting because its stock has been trading under a dollar for some time. Under Nasdaq rules, a company's stock price must not drop below $1 for more than 30 days. Tegal's stock hasn't traded above the $1 mark since last July; in late trading today it was trading at 39 cents per share.
Tegal announced Dec. 12 of last year that it would appeal Nasdaq's decision to remove the company from the Nasdaq National Market, following a Nasdaq notification Dec. 6.
The transfer to the small cap market was effective at the opening of trading today. Tegal's continued listing on the Nasdaq SmallCap Market is contingent upon the successful completion of a Nasdaq application and review process. In the meantime, Tegal continues to trade under the symbol TGAL.
Tegal also announced that its stockholders have given its board of directors the authority for a reverse split of the company's common stock within a range of two-for-one to fifteen-for-one, should it elect to do so. The timing and ratio of a reverse split, if any, is at the sole discretion of the Tegal's board, the company said.
Tegal said it currently meets all the requirements for listing on the small cap market except for the $1 minimum bid price per share requirement. It has a grace period until September 2 to meet that requirement, and it may be eligible for an additional 90-calendar day grace period Additional grace periods may be available thereafter if Nasdaq's proposed rule changes are adopted, Tegal said.
In its latest quarterly earnings, Tegal reported increased revenues and a sequential decrease in losses for the December quarter, and also announced further job cuts.
